Search advertising spending this year and next is expected to slow as the economic downturn grips the market for a full two years before some relief comes in 2011.
EMarketer said it sees significantly slower growth in the market in 2009 and 2010 and only a modest boost in 2011.
Growth slows for two full years
While the search market remains relatively healthy compared with other ad markets – banner display ads, for instance, or off-line newspaper advertising – the length of the downturn could pressure the growth rates of companies such as Google and Yahoo.
The research firm projects search ad spending will increase just $1.59 billion in 2009, compared with a $1.88 billion rise in 2008 and a $2 billion rise in 2007. The increase in 2010 will be a similar $1.59 billion.
In 2011, spending will increase a relatively stronger $1,67 billion before jumping by $2.13 billion I n2012.
“This slower growth is a direct result of the current economic climate and its aftermath, as both companies and consumers dig out of the hole,” the firm says.
